Failing to Plan for a Disability
People are living longer and the risk of being disabled during your lifetime is increasing. A disability can be more financially damaging than death. Nevertheless, disability planning is often ignored.
If you are single or your spouse does not have complete access to and control of important assets during your disability it could be devastating. What if you owned a business and an important business decision needed to be made? Or what if you had intended to sell some stock or other investment but now were unable to do so? What if disability occurs on the eve of a real estate closing?
Without a disability plan it is often necessary to hire an attorney and commence a formal and costly judicial proceeding to have a conservator and guardian appointed. These proceedings can take a month or more to complete and cost your estate hundreds of dollars. It can also be an emotionally difficult road – to have your family come into court and explain how you are disabled or incompetent will be difficult to them and for you.
Disability planning can eliminate the need for costly emergency legal proceedings and provide a smooth transition for you and your family in times of disaster or death.
You purchase insurance for the “what if” scenario – for your car, for your home. Disability planning is an insurance for the “what if” – you are too ill to handle your business and legal affairs, you are unable to communicate with your medical caregivers or are unable to make the necessary medical decisions.
This can be done easily with the execution of a Durable Power of Attorney and a Patient Advocate Designation.